Ch2.1.2

What is a budget?

• A plan for unexpected expenses

• A written plan for giving, saving, and spending

• A list of monthly bills

• A summary of past expenses

What is income?

• Money spent on groceries

• Money received for work, as a gift, or through investments

• Money saved in a bank

• Money borrowed from a friend

What is a fixed expense?

• An expense that changes every month

• An expense that remains the same from month to month

• An unexpected expense

• An expense that occurs once a year

What is a variable expense?

• An expense that is always the same

• An expense that varies in dollar amount from month to month

• An expense that is paid annually

• An expense that is unnecessary

What is an intermittent expense?

• An expense that occurs monthly

• An expense that occurs at various times throughout the year

• An expense that is always fixed

• An expense that is always variable

What is a discretionary expense?

• An essential expense

• An expense for things you don’t need

• An expense that is fixed

• An expense that is variable

Which of the following is an example of a fixed expense?

• Monthly rent

• Grocery bills

• Entertainment costs

• Travel expenses

Which of the following is an example of a variable expense?

• Car payment

• Utility bills

• Mortgage

• Insurance premium

Which of the following is an example of an intermittent expense?

• Weekly groceries

• Annual car registration

• Monthly internet bill

• Daily coffee

Which of the following is an example of a discretionary expense?

• Rent

• Dining out

• Health insurance

• Electricity bill